Despite this fact, many marketers fail to create a positive ROI for their Facebook campaigns because of one main reason.

Timing.

Advertisers try to sell to shoppers too early, on their first encounter with the brand or when they are still in the comparison shopping stage and not yet ready to buy.

This means lost dollars and poor return on investment.

Facebook dynamic products ads allows you to target shoppers with ads based on their on-site behaviors, show to shoppers when they are most likely to buy, when their purchase intent is peaked.

As you’ll learn in this series, following this Facebook advertising strategy resulted in 16900.45 AUD revenue with 660.20 AUD ad spend which meant a 2,459.90% ROI improvement for one of our clients, ByCharlotte.

In the first part of this two part blog series we will teach you how you too can follow this strategy and how to practically set up Facebook dynamic product ads for your Shopify store.

In part two we’ll share our learnings and results from a ByCharlotte Facebook ads campaign.

Finally we’ll be hosting a live webinar where we dig deeper into Facebook advertising strategies, offering live Q&A and live feedback on your campaigns.

Sign Up To The Shopify Facebook Ads Newsletter:

Get notified when we publish part 2 in the series.
Get invitations to our next LIVE Shopify Facebook Ads Webinar.

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Here’s what we’ll cover in part 1:

Creating your Facebook ads strategy

Leveraging retargeting for Facebook ads success

Basic Facebook business set up

Facebook pixel installation for Shopify

Setting up DPA tracking and event triggers

Creating your product catalog

Creating your DPA campaign in Facebook

In part 2 we’ll draw back the curtain on ByCharlotte, a jewellery brand on Shopify based out of Sydney and how they achieved a 2,459.90% ROI using our exact strategy and set up.

1. Creating Your Facebook Ads Strategy

Without one you’ll simply be throwing stuff against the wall and hoping something sticks.

With a strategy you can make sure you’re aligned with your team, so you work together and progress faster.For setting up your strategy you need a clear business objective.

Every business objective is made up of a goal, objective, KPI and target.

The most important KPI to determine the success of your Facebook campaigns is your conversion rate of shopper to buyer.

The following screenshot of a Compass Benchmark Report shows how a Shopify store is comparing vs. a peer group of similar stores.

The store has a conversion rate of only 0.4% while the best 25% similar stores (green line) achieve a conversion rate of 3.69% on average.

That’s a lot of money being left on the table.

If you want to evaluate your performance before you start working on a new campaign, you can set up a free Compass account to benchmark your Facebook Conversion Rate (and other metrics). This allows you to set a realistic goal for your campaign based on your peer group’s results.

Facebook dynamic product ads more often than not will sky rocket your Facebook ads conversion rates.

They’re the foundation to building the most profitable Facebook advertising funnels for your Shopify store and increasing your Facebook conversion rates.Let’s get started with the campaign setup.

Benchmark Your Facebook Conversion Rate

How does the conversion rate of your store compare with the best in YOUR market?

2. Leveraging Retargeting For Facebook Ads Success

As we mentioned earlier, timing is hugely important when it comes to creating your Facebook strategy. Therefore the key to successful Facebook advertising is understanding what types of campaigns to create for different parts of your customer journey.

A common mistake you see again and again with Facebook ads strategies is trying to sell to people too early in the customer journey and sales funnel.

Hence the low conversion rates.

The best way to get high conversion rates and cheap sales from Facebook advertising is through our two step sales funnel.

You retarget that traffic segmented by specific user behaviors using Dynamic Product Ads

The first step in this sales funnel is all about brand awareness. You want to get as many eyeballs on your ads and content as possible and optimize for cheap click to your website.

This allows you to build what are known as ‘custom audiences’.

These custom audiences are simply a lead lists of people who have clicked on your ads and visited your site, where you’ve then started to track them (by placing a cookie on them) and put them in a specific segment or bucket based on their actions for later retargeting.

Let’s now learn how to setup your Shopify store and Facebook for DPA ads and then we can dive into the details.

3. How To Create An Ad Account On Facebook

First things first, you’ll need to cover the basics. To run Facebook ads for your Shopify store you will need:

4. Shopify Facebook Pixel Integration & Installation

Once you’re set up on Facebook Business you’ll need to install the Facebook pixel in Shopify so your can track and cookie visitors, allowing you to later retarget them with dynamic product ad campaigns.

Click on Online Store > Preferences and scroll down to Facebook Pixel.

1. ID Format

In line 4 we create a unique ID for the product variant being viewed by the visitor and put it into the content_id variable. This ID must have the following format: shopify_<PRODUCTID>_<VARIANTID>, e.g. shopify_284197941_670889949.

The first step is to jump into Facebook ads manager and click create ad.

Then choose Product catalog sales.

Make sure you choose the Flexify feed in the product catalog option and name your campaign according to best practice naming conventions.

Next you can will see the audience options you have for retargeting.

You can see highlighted here you can select the products to include and also the different segmenting options we discussed.

Best practice is to use the Custom combination section and include viewed or added to cart product whilst excluding purchased segments.

Make sure you set all other fields on this page, make sure to consider testing placement of ads as mobile vs desktop as one example can massively change the results you get from a campaign.

Next on the the ad format screen you can pull in fields of data from your product catalog feed.

This will allow you to write a generic description for example, and then customize it per ad variation based on details from specific products or collections.

Finally make sure you check Track all conversion from my Facebook pixel that way you can continue to update your purchased visitor segment. We also recommend you to add Google UTM tracking parameter to your add.

Shopify Facebook Ads Case Study

Now that you have a basic understanding of how dynamic product ads work and how to set them up using Facebook business manager and Flexify you’re one step closer to improving your Facebook ads profits and conversion rate benchmark!

In the next post in this series we’ll dig into the granular details of DPAs and answer all those questions that arose from this post.

We’ll cover how to set up great ad creatives, what to target and test and how to optimize your ads.

Drawing back the curtain on a real life case study where another Shopify store ByCharlotte achieved a 2,459.90% ROI improvement when moving to our Facebook DPA strategy.

Sign Up To The Shopify Facebook Ads Newsletter:

Get notified when we publish part 2 in the series.
Get invitations to our next LIVE Shopify Facebook Ads Webinar.

Founded in 2012 Whole Design Studios is a Shopify marketing agency focused on fashion and luxury businesses. They work with 50+ fashion, apparel, cosmetics, jewelry and luxury brands monthly. Giles is the CEO and also the founder of AcquireConvert.com and Co-Founder of RisePro.co. He’s a head marketing mentor at the Google Launchpad accelerator and a member of the Google expert program.

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